An additional $484 billion relief package has been approved by the Senate on April 21st and is expected to pass the House on Thursday, April 23rd. This includes an additional $60 billion to fund Economic Injury Disaster Loans (EIDL).
As a small business owner, if you missed the first wave of funding for these SBA loans, it’s important to submit your application as soon as the SBA opens up the online application form again. If you already submitted, be sure to confirm your original application is still in the system.
The CARES Act (Coronavirus Aid, Relief, and Economic Security) was passed in late March to provide much needed help to the U.S. economy which has slowed down during the Coronavirus pandemic.
In particular, the stimulus package includes $349 billion to support small businesses. This can offer help to businesses like yours in need of immediate financial support.
This is the largest economic bill in U.S. history and we hope that your business can benefit. The Economic Injury Disaster Loan includes an emergency advance of up to $10k.
Economic Injury Disaster Loan (EIDL) Emergency Advance
In response to the coronavirus pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan (EIDL) Emergency Advance of up to $10,000.
This advance will provide economic relief to businesses that are currently struggling with a temporary loss of revenue. Funds will be made available upon approval of your application. The good news: This loan advance will not have to be repaid.
These grants provide an emergency advance to small businesses that have been harmed by COVID-19. To access the advance, you first apply for an EIDL and request the advance on the application.
The advance may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
The funds to support the SBA programs and loans will continue to go fast, so don’t delay. Unlike the Payment Protection Program, the federal Small Business Administration (SBA) runs the Economic Injury Disaster Loan (EIDL) program directly.
You can learn more and submit your application online now: SBA EIDL Loan
We also provide answers to some of the most popular questions around the Economic Injury Disaster Loan
How do I Apply for the Economic Injury Disaster Loan (EIDL)?
You can apply online on the SBA website. It doesn’t cost anything to apply.
To apply for the COVID-19 Economic Injury Disaster Loans and Advance, submit your application online now: SBA EIDL Loan
On the application, be sure to check the box to be considered for an advance before your loan is finalized. You will need to provide a bank routing number and account number to have the loan advance deposited, upon approval of your application.
Who Qualifies for the Economic Injury Disaster Loan Emergency Advance?
All businesses who apply for an EIDL loan are eligible to also apply for a fast $10,000 advance on their loan. The SBA will determine how much loan advance they will give you, and when they will send the loan advance. If you receive a loan advance, the advance won’t have to be repaid. The loan advance may be $10,000, but it may be less.
When completing your loan application, be sure to check the box to indicate you want to be considered for up to $10,000 in form of a grant.
What is Covered under the Economic Injury Disaster Loan (EIDL)?
You can use the advance and loan for payroll, fixed debts, accounts payable, and other expenses that you are unable to pay directly due to the COVID-19 impact.
• Paid sick leave to employees unable to work due to the direct effect of the COVID–19
• Maintaining payroll to retain employees during business disruptions or substantial slowdowns
• Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains
• Making rent or mortgage payments
• Repaying obligations that cannot be met due to revenue losses
Do I have to pay back the Economic Injury Disaster Loan (EIDL)?
Yes. This loan is not forgivable. However; you can qualify for up to $10,000 available as an emergency grant, upon approval. If you receive a loan advance, the advance won’t have to be repaid.
What are the loan terms, fees and interest for the Economic Injury Disaster Loan (EIDL)?
These are the terms, fees and interest for this Loan:
• Interest rate of up to 3.75% per year
• Principal and interest payments can be deferred for up to one year
• Term length is up to 30 years
• Loan amount based on amount of economic injury, up to $2 million
• No collateral if loan is $25,000 or less
• No personal guaranty if loan is $200,000 or less
This loan is not forgivable. Your loan approval documents will specify how loan proceeds can be spent.
Who qualifies for the Economic Injury Disaster Loan (EIDL)?
Any business with up to 500 employees and sole proprietors.
This program is for any small business with less than 500 employees. This includes sole proprietorships, independent contractors and self-employed, along with private non-profit organization or 501(c) (19) veterans organizations affected by COVID-19.
Eligibility requirements include:
- Any business with up to 500 employees and sole proprietors
- Business was in operation on January 31, 2020
- Past earnings, projected cash flow, and future prospects
- Ability to repay and potential for long-term success
- However SBA may approve an applicant based solely on credit score of the applicant
- No majority owner is more than 60 days delinquent on child support
- No legal gambling businesses, lobbying companies or pornography
For more information, visit The SBA has a hotline to help answer questions 1-800-659-2955, 7 days a week from 7:00a.m. to 9:00p.m.
As of publish date, while the information provided in this article is intended to be accurate, it should not be considered legal advice. These programs are rapidly evolving and we cannot be held responsible for any errors or omissions. Please contact your local bank, SBA and U.S. Treasury websites for updated information. You should also consult with your tax, legal or financial advisor to make the right choice for your business.
The senate has created a comprehensive guide that covers many of the small business provisions in the CARES Act. Download the guide here.